BHEL bags contract for 1,080 MW Manuguru thermal power project from TSGENCO

Valued at over Rs.50,000 Million, the present order envisages setting up a 4x270 MW Thermal Power Plant on EPC basis at Manuguru in Khammam District of Telangana. With this, TSGENCO has reposed confidence in BHEL’s expertise in this sector. 

The newly formed Telangana state utility, Telangana State Power Generation Corporation Limited (TSGENCO) has awarded Bharat Heavy Electricals Limited (BHEL) with an EPC (Engineering, Procurement & Construction) order for setting up a 4x270 MW thermal power plant in the state. 

Earlier, in December, 2014, TSGENCO had placed an order for BHEL to set up Telangana’s first Supercritical Thermal Power Plant of 800 MW rating, also on EPC basis, at Kothagudem. Valued at over Rs.50,000 Million, the present order envisages setting up a 4x270 MW Thermal Power Plant on EPC basis at Manuguru in Khammam District of Telangana. With this, TSGENCO has reposed confidence in BHEL’s expertise in this sector. 

Significantly, the project is targeted to be commissioned in 24 months on fast track basis with both TSGENCO and BHEL setting up teams to expedite clearances and execution of the project. TSGENCO has also entered into an MoU with BHEL for construction of new thermal power plants totaling 6,000 MW in the state. All these power plants are expected to commence generation within the next three years to meet the state's increasing demand for power. With the order for Manuguru project, 1880 MW has already been awarded to BHEL. To overcome the current uncertainty of coal supply, BHEL shall use its in-house developed fuel flexible boiler in the proposed power plants. This boiler is capable of firing the entire range, from 100% Indian to 100% imported mix of coal. 

Its design has been developed by BHEL with its experience of over five decades of working with various types of coal. It is anticipated that the use of this boiler will provide security against variation in design coal and the coal actually available during operation, thereby offering operational flexibility for uninterrupted generation. BHEL’s scope of work in the project includes design, engineering, manufacture, supply, construction, erection, testing & commissioning of 4x270 MW thermal sets on EPC basis. The key equipment for the contract will be manufactured at BHEL’s Trichy, Hyderabad, Haridwar, Bhopal, Ranipet, Bangalore and Jhansi plants, while the company's Power Sector - Western Region will be responsible for civil works and erection / commissioning of the equipment. Notably, with this order, BHEL’s reference list is enhanced to 35 sets of 270 MW ratings units. 

With a manufacturing capacity of 20,000 MW per annum, BHEL is the largest manufacturer of power generation equipment in the country and has been a partner in the country's vision to achieve self-reliance in energy. The company has established the capability to deliver power plant equipment of 20,000 MW per annum aiming to meet India's demand for power equipment with technology suitable for Indian conditions developed through in-house R&D.

At 12:01 PM, the stock of the company is trading at Rs. 237. The stock is up 2% from its previous close which was at RS. 233. It hit a high at Rs. 238 and low at Rs.233. Total traded quantity on the counter stood at over 1.29 lk shares on BSE.